Sunrun Stock Has Surged 61% in a Year — So Why Did One Investor Sell 300,000 Shares?

Dallas-based Canyon Capital Advisors reported on November 14 that it sold 300,000 shares of Sunrun in the third quarter. The fund’s position value fell by approximately $13 million from quarter to quarter.

What Happened

Canyon Capital Advisors disclosed in its Securities and Exchange Commission (SEC) Form 13F filing on November 14 that it reduced its stake in Sunrun (NASDAQ:RUN) by 300,000 shares during the third quarter. Following the transaction, the fund reported holding 1.7 million shares valued at $29.4 million as of September 30. The filing can be accessed here.

What Else to Know

This sale reduced Sunrun’s weight to 4% of the fund’s reportable AUM.

Top holdings after the filing:

• NYSE:CBL: $258.9 million (35.5% of AUM)
• NYSE:AMCR: $130.8 million (17.9% of AUM)
• NYSE:SDRL: $127.7 million (17.5% of AUM)
• NYSE:FFWM: $45.4 million (6.2% of AUM)
• NYSE:AMBP: $44.8 million (6.1% of AUM)

As of Monday's market close, shares of Sunrun were priced at $18.55, up a staggering 61% over the past year and well outperforming the S&P 500's 13% gain in the same period.

Company Overview

Company Snapshot

Sunrun Inc. is a leading provider of residential solar and battery storage solutions in the United States, offering residential solar energy systems, battery storage solutions, and related products, with revenue generated from system sales, installations, and ongoing maintenance services. The company leverages a vertically integrated approach, controlling the design, installation, and maintenance of solar systems to capture value across the customer lifecycle. Sunrun's scale and direct sales model position it to benefit from the ongoing transition to distributed renewable energy in the residential sector.

Foolish Take

Even with Sunrun’s sharp rebound this year, the stock remains deeply discounted from its 2021 peak, which almost certainly leaves investors to weigh the company's improving fundamentals against lingering volatility in solar financing and policy. Canyon’s trim comes just as Sunrun posted its sixth consecutive quarter of positive cash generation and reiterated its 2025 cash outlook—momentum long-term investors may still find meaningful. To put Canyon's Sunrun stake in context, the fund very much continues to concentrate its portfolio in income-oriented and industrial names, and Sunrun remains outside its top holdings.

Operationally, however, Sunrun delivered 35% revenue growth in the third quarter to $724.6 million. It also raised $1.4 billion in new non-recourse debt financings and advanced its home-to-grid strategy, noting more than 106,000 customers enrolled in distributed power plant programs—a 300% year-over-year increase.

Ultimately, Canyon’s relatively modest trim likely reflects portfolio rotation, not a thesis reversal, and Sunrun’s fundamentals continue to improve. That means that investors comfortable with volatility may view the stock’s 80% drawdown from 2021 highs as an opportunity, so long as they believe in the sustainability of broader industry-wide tailwinds.

Glossary

13F reportable assets under management (AUM): The portion of a fund's assets that must be disclosed in quarterly SEC Form 13F filings.
Position value: The total market value of a specific investment held by a fund or investor.
Weight (of a holding): The percentage of a fund's total assets represented by a particular investment.
Trailing twelve months (TTM): The 12-month period ending with the most recent quarterly report.
Forward price-to-earnings ratio: A valuation metric comparing a company's current share price to its projected future earnings per share.
Vertically integrated: A business model where a company controls multiple stages of its supply chain, from production to sales.
Direct-to-consumer business model: Selling products or services directly to end customers, bypassing third-party retailers or intermediaries.
Distributed renewable energy: Energy generated from renewable sources at or near the point of use, rather than at a central power plant.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amcor Plc. The Motley Fool has a disclosure policy.